HB11 would amend the Internal Revenue Code to create an above-the-line deduction for amounts paid for health insurance premiums. The deduction would apply to premiums for insurance that qualifies as medical care under existing tax law and would cover the taxpayer, the taxpayer’s spouse, and dependents. Because it is an above-the-line deduction, taxpayers could claim it without itemizing deductions.
The bill also specifies that the premium amounts deducted under this new provision could not be used again for any other deduction or credit under the tax code. The change would take effect for taxable years beginning after December 31, 2024, meaning it would apply prospectively rather than retroactively.
Impact
If enacted, the bill would modify federal tax law by adding a new deduction in the Internal Revenue Code and by amending the rules governing adjusted gross income deductions. It would affect individual taxpayers who pay health insurance premiums, especially those who do not itemize deductions, by lowering taxable income and potentially reducing federal tax liability. The bill would also require conforming changes to the Code’s section numbering and table of sections.
Sentiment
The available record shows no committee transcript, debate, or vote history, so there is no documented public sentiment in the provided materials beyond the bill’s introduction and referral. Based on the text alone, the measure appears to be a tax-relief proposal intended to make health coverage more affordable through the tax code.
Contention
No specific points of contention are documented in the provided materials. Potential issues implied by the bill’s structure, however, include the federal revenue cost of the deduction, whether the benefit would disproportionately help higher-income taxpayers with employer-sponsored or individually purchased coverage, and how the new deduction would interact with existing health-related tax provisions. Because there were no recorded discussions or votes, no named supporters or opponents are identifiable from the record provided.
This bill allows an individual taxpayer a deduction from gross income for insurance premiums paid for the health care coverage of the taxpayer and the taxpayer's spouse and dependents. The bill makes the deduction available whether or not the taxpayer itemizes other deductions.
Amending The Majority Caucus Leadership, Minority Caucus Leadership, And Chairs, Vice Chairs, And Members Of The Standing Committees Of The House Of Representatives Of The Thirty-third Legislature.
Homeowners Premium Tax Reduction Act of 2025 This bill establishes a new deduction of up to $10,000 claimed against gross income (above-the-line tax deduction) for annual policy premiums paid or incurred for homeowners insurance on an individual's principal residence.